Tuesday, March 31, 2009
Moving Day
Hello! In an effort to be more efficient, I am rolling my blog and web site into one. You can find my blog posts, along with a real estate search engine and other tools, at http://bainbridgeagent.com. Please visit me there!!
Thursday, February 26, 2009
A Ray of Sunshine
Living in the Pacific Northwest, you know what it's like to go days on end without seeing that big bright ball in the sky. The housing market has felt a little like that lately. You might want to dust off your sunglasses, there is some good news to report... finally.
Good News Item #1: Tax Credit for First Time Homebuyers
Congress passed legislation to help energize the housing market with a tax credit for first-time home buyers. Here are the details:
(1) Who is eligible: First-time buyers only
(2) How it is administered: The tax credit will NOT have to be repaid
(3) How much: The tax credit is 10% of the purchase price, up to $8,000.
(4) Time Frame: The credit is available for homes purchased between January 1 and December 1, 2009.
(5) Income Qualification: The full credit is available for singles who earn up to $75,000 and for couples earning up to $150,000. Check with your tax advisor for your eligibility.
More good news (can you believe it?)... For those who purchased their first home between April 9, 2008 and January 1, 2009, they may also be eligibly for a tax credit. For details, check out this web site sponsored by the National Association of Homebuilders: http://www.federalhousingtaxcredit.com/home.html
Good News Item #2: FHA Loan Limits Increased
The county-based loan limit that went away at the end of 2008 has returned. As a result of the American Recovery and Reinvestment Act of 2009 the Federal Housing Authority (FHA) has increased the maximum loan limits. The limit is variable based on county, and once again, it is $475,000 for Kitsap. What does that mean for a borrow? For loans greater than $417,000 and up to or equal to $475,000, interest rates will be pretty reasonable.
What does that mean for you? If you buy a home up to $593,750 and put 20% down, you will be able to get a loan with a good interest rate because the loan will not fall into the Jumbo category.
Both of the above "Good News" items should help grease the wheels to get this market moving along.
Good News Item #1: Tax Credit for First Time Homebuyers
Congress passed legislation to help energize the housing market with a tax credit for first-time home buyers. Here are the details:
(1) Who is eligible: First-time buyers only
(2) How it is administered: The tax credit will NOT have to be repaid
(3) How much: The tax credit is 10% of the purchase price, up to $8,000.
(4) Time Frame: The credit is available for homes purchased between January 1 and December 1, 2009.
(5) Income Qualification: The full credit is available for singles who earn up to $75,000 and for couples earning up to $150,000. Check with your tax advisor for your eligibility.
More good news (can you believe it?)... For those who purchased their first home between April 9, 2008 and January 1, 2009, they may also be eligibly for a tax credit. For details, check out this web site sponsored by the National Association of Homebuilders: http://www.federalhousingtaxcredit.com/home.html
Good News Item #2: FHA Loan Limits Increased
The county-based loan limit that went away at the end of 2008 has returned. As a result of the American Recovery and Reinvestment Act of 2009 the Federal Housing Authority (FHA) has increased the maximum loan limits. The limit is variable based on county, and once again, it is $475,000 for Kitsap. What does that mean for a borrow? For loans greater than $417,000 and up to or equal to $475,000, interest rates will be pretty reasonable.
What does that mean for you? If you buy a home up to $593,750 and put 20% down, you will be able to get a loan with a good interest rate because the loan will not fall into the Jumbo category.
Both of the above "Good News" items should help grease the wheels to get this market moving along.
Friday, February 20, 2009
Chilly Hill!!
It's that time of year again. While I am not, myself, a bicyclist, I love the Chilly Hilly because it is one of the annual events that make up the fabric of this island. Squeaky Wheels has a good map of the route: www.squeakywheels.org.
Happy biking and spectating!
Happy biking and spectating!
Monday, February 16, 2009
How's the Market?
If I were organized enough, I would come up with a repeating theme like "Graph Geek Monday". I'm not that organized, and my schedule is not predictable enough to ensure time to make graphs every Monday. I do have some cool graphs to look at THIS Monday, however. The graphs below demonstrate the big trend I have been seeing for months: the lower end of the single family residential market is relatively healthy (at least when you compare it with the high end). By "lower end" I mean up to $650,000. Here are 2 graphs: one showing Sold, Pending and Active listings in ALL price ranges from October 2007 through December 2008.
The second graph shows the same information for the Bainbridge market, but only up to $649,999.
What strikes me in both of these graphs is the number of sales (or lack of sales) compared to the available inventory. There is a measure the industry uses to determine the relative health of a real estate market. It is the number of months of inventory. Again, if you slice it up by price sector, you see a different, healthier, market under $650,000. In a neutral market (no big buyer or seller advantage), there will be between 4 and 6 months of inventory. Below 4 months of available inventory equates to a Seller's Market, and greater than 6 months inventory translates to a Buyer's Market. With about 16 month's worth of inventory across our market for all price levels, it is one heck of a buyer's market.
The market under $650,000 (from the data in the graph below) shows 6.7 months of available inventory in December 2008. It will be interesting to see how things play out. I wouldn't call it a neutral market by any means. We don't see sellers slashing prices in this segment to get a sale, but from the trenches I am seeing some real negotiating at several steps in the process.
A final note on the sales pace for the year thus far, since the data in the graphics only goes through the end of December 2008. We have had 18 closings thus far this year. At this time last year there were 14. Good news? A trend? We hope, but it is way too early to say. I'll report back on the pace of the market from time to time through the year.
The second graph shows the same information for the Bainbridge market, but only up to $649,999.
What strikes me in both of these graphs is the number of sales (or lack of sales) compared to the available inventory. There is a measure the industry uses to determine the relative health of a real estate market. It is the number of months of inventory. Again, if you slice it up by price sector, you see a different, healthier, market under $650,000. In a neutral market (no big buyer or seller advantage), there will be between 4 and 6 months of inventory. Below 4 months of available inventory equates to a Seller's Market, and greater than 6 months inventory translates to a Buyer's Market. With about 16 month's worth of inventory across our market for all price levels, it is one heck of a buyer's market.
# Month's Inventory, All Price Ranges(Single Family Residences)
The market under $650,000 (from the data in the graph below) shows 6.7 months of available inventory in December 2008. It will be interesting to see how things play out. I wouldn't call it a neutral market by any means. We don't see sellers slashing prices in this segment to get a sale, but from the trenches I am seeing some real negotiating at several steps in the process.
# Month's Inventory, Under $650,000 (Single Family Residences)
A final note on the sales pace for the year thus far, since the data in the graphics only goes through the end of December 2008. We have had 18 closings thus far this year. At this time last year there were 14. Good news? A trend? We hope, but it is way too early to say. I'll report back on the pace of the market from time to time through the year.
Saturday, February 7, 2009
Affordable Housing on Ferncliff
I stepped into my office this morning and picked up the Review and flipped to the article about the affordable housing plans underway on Ferncliff. http://www.pnwlocalnews.com/kitsap/bir/news/39174104.html
This project screams "Bainbridge" and "community." Designed by local architect Julie Kreigh, slated to be built by local building contractor Fairbank Construction, and most amazing of all, the land is donated by a most generous Bainbridge resident.
I read some of the objections in the paper (too much density, traffic impact). I would like to introduce these objectors to the people I meet on a regular basis who cannot afford to buy a home on Bainbridge. Often, these are people who grew up on Bainbridge - their families may have lived here for generations. I've heard people say that, "well, that's just too bad" or "not everyone can afford to live here - they'll just have to buy somewhere with lower housing prices."
Prior to moving to Washington, I lived in a very well-heeled community in Fairfield County, Connecticut. All of the jobs that kept the community running (police, firefighters, grocery clerks, teachers, store clerks, etc.) were held by people who could not afford to buy, or even rent, in the town they worked in. The town had a very "us and them" feel. I hated it. Never felt at home there. Never felt connected. (Note: I didn't grow up there, it was just a stop on my way to my true home on Bainbridge!)
One of the things that has always struck me about Bainbridge, and I would say this is true of the Northwest in general at least as compared to where I grew up (New England) is that people are not defined by what they do, but rather by who they are. Conversations are not started by asking "What do you do?" (Translate: do you make a lot of money???).
Sure, there are compromises to be made to have affordable housing on Bainbridge. I wholeheartedly support those compromises in order to keep Bainbridge a place where people of lots of different incomes can afford to buy a home and continue to make the fabric of this community rich in ways that cannot be measured on a bank statement.
This project screams "Bainbridge" and "community." Designed by local architect Julie Kreigh, slated to be built by local building contractor Fairbank Construction, and most amazing of all, the land is donated by a most generous Bainbridge resident.
I read some of the objections in the paper (too much density, traffic impact). I would like to introduce these objectors to the people I meet on a regular basis who cannot afford to buy a home on Bainbridge. Often, these are people who grew up on Bainbridge - their families may have lived here for generations. I've heard people say that, "well, that's just too bad" or "not everyone can afford to live here - they'll just have to buy somewhere with lower housing prices."
Prior to moving to Washington, I lived in a very well-heeled community in Fairfield County, Connecticut. All of the jobs that kept the community running (police, firefighters, grocery clerks, teachers, store clerks, etc.) were held by people who could not afford to buy, or even rent, in the town they worked in. The town had a very "us and them" feel. I hated it. Never felt at home there. Never felt connected. (Note: I didn't grow up there, it was just a stop on my way to my true home on Bainbridge!)
One of the things that has always struck me about Bainbridge, and I would say this is true of the Northwest in general at least as compared to where I grew up (New England) is that people are not defined by what they do, but rather by who they are. Conversations are not started by asking "What do you do?" (Translate: do you make a lot of money???).
Sure, there are compromises to be made to have affordable housing on Bainbridge. I wholeheartedly support those compromises in order to keep Bainbridge a place where people of lots of different incomes can afford to buy a home and continue to make the fabric of this community rich in ways that cannot be measured on a bank statement.
Friday, February 6, 2009
Tax Incentives for Buyers In the News
Here is an article published on the Money/CNN website regarding a $7500 tax credit for (1) first time home buyers or (2) buyers who have not owned a home in the past 3 years.
http://money.cnn.com/2009/01/29/real_estate/tax_credit_near/index.htm?postversion=2009012907
There is another good link on the same web site regarding housing stimulus ideas circulating in the Senate. These ideas include: 30 year fixed-rate mortgages (for new owners and current owners looking to refinance) at 4%; increasing the first-time home buyer tax credit to $15,000; and a 90-day moratorium on foreclosures.
http://money.cnn.com/2009/02/01/news/economy/Senate_stimulus_housing/index.htm?postversion=2009020210
On the front page of the real estate section (http://money.cnn.com/real_estate/index.html) I notice two opposing headlines:
"Mortgage rates hit six week high" and "Mortgage rates down for third week." Huh?!? I checked the dates the articles were published: the former is from this week, the latter from November 2008. Hmmm... I would think CNN/Money would update their web site a little more than that. The news industry must be hurting more than housing.
http://money.cnn.com/2009/01/29/real_estate/tax_credit_near/index.htm?postversion=2009012907
There is another good link on the same web site regarding housing stimulus ideas circulating in the Senate. These ideas include: 30 year fixed-rate mortgages (for new owners and current owners looking to refinance) at 4%; increasing the first-time home buyer tax credit to $15,000; and a 90-day moratorium on foreclosures.
http://money.cnn.com/2009/02/01/news/economy/Senate_stimulus_housing/index.htm?postversion=2009020210
On the front page of the real estate section (http://money.cnn.com/real_estate/index.html) I notice two opposing headlines:
"Mortgage rates hit six week high" and "Mortgage rates down for third week." Huh?!? I checked the dates the articles were published: the former is from this week, the latter from November 2008. Hmmm... I would think CNN/Money would update their web site a little more than that. The news industry must be hurting more than housing.
Friday, January 16, 2009
All the News That's Fit to Print
Whaddayaknow... my favorite news source has published a very flattering article about Bainbridge Island.
http://www.nytimes.com/2009/01/16/greathomesanddestinations/16havens.html?_r=1&ref=realestate
I'll let the article do the talking.
http://www.nytimes.com/2009/01/16/greathomesanddestinations/16havens.html?_r=1&ref=realestate
I'll let the article do the talking.
Thursday, January 8, 2009
Drinking the Kool-Aid
I love Bainbridge Island. If there's a better place to live, I challenge someone to prove it. A few things happened over the holiday season that were great reminders of what makes this place special. There is REAL community here.
Whether or not you live on Bainbridge, you may have heard about the snow storms we had in the final weeks of December that left a lot of people without power and unable to leave there homes because the roads were pretty treacherous. Friends called each other to see if everyone had what they needed to get by. I have a friend who lives down the street from me who still had power, while I did not one day. That particular day I was home with my two children, with no way to make coffee because while I did have whole beans, a French press, and a gas cook top, I didn't have a way to grind the beans. Knowing how important coffee is to me, my friend not only stopped by with a thermos of hot coffee to pour me a cup but he also brought some ground coffee over. It sure helped me make it through the day with two restless kids!
Another story revolves around an annual party my family attends on New Year's Eve. Each year at this party we ring in the new year with lasagna, a movie for the kids, a white elephant gift exchange and a children's book exchange. Having waited until the last minute to get a book, I frantically went from store to store trying to find a children's book because the book store had closed early. I popped my head into a card shop and asked if they happened to have any children's books; they said they didn't and while I moved on to the next retailer a woman came out of the card shop and tracked me down. She had overheard my question and happened to have an extra copy of a beautiful compilation of children's story's in her car (her child already had a copy of the same book). She gave it to me and would not take anything in return.
I love living in a place where people go out of their way to help out their neighbors, in ways small and large. Thoughtfulness and generosity abounds here. People are kind to each other. Maybe I'm just drinking the Kool-Aid, or maybe this place I call home is really special.
Whether or not you live on Bainbridge, you may have heard about the snow storms we had in the final weeks of December that left a lot of people without power and unable to leave there homes because the roads were pretty treacherous. Friends called each other to see if everyone had what they needed to get by. I have a friend who lives down the street from me who still had power, while I did not one day. That particular day I was home with my two children, with no way to make coffee because while I did have whole beans, a French press, and a gas cook top, I didn't have a way to grind the beans. Knowing how important coffee is to me, my friend not only stopped by with a thermos of hot coffee to pour me a cup but he also brought some ground coffee over. It sure helped me make it through the day with two restless kids!
Another story revolves around an annual party my family attends on New Year's Eve. Each year at this party we ring in the new year with lasagna, a movie for the kids, a white elephant gift exchange and a children's book exchange. Having waited until the last minute to get a book, I frantically went from store to store trying to find a children's book because the book store had closed early. I popped my head into a card shop and asked if they happened to have any children's books; they said they didn't and while I moved on to the next retailer a woman came out of the card shop and tracked me down. She had overheard my question and happened to have an extra copy of a beautiful compilation of children's story's in her car (her child already had a copy of the same book). She gave it to me and would not take anything in return.
I love living in a place where people go out of their way to help out their neighbors, in ways small and large. Thoughtfulness and generosity abounds here. People are kind to each other. Maybe I'm just drinking the Kool-Aid, or maybe this place I call home is really special.
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